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Saturday, July 23, 2011

On Sunday, July 10, 2011 the Gillard Government announced publicly that the 500 largest polluters in Australia would be taxed at $23/tonne of carbon emission, effective from July 1, 2012.

Who are the big "victim" under the new tax and regulation. thetelegraph.com.au has list out 50 top emitters in Australia. For example, Macquarie generation is the state owned power plant, has to pay $538 million for emits 23 million tonnes carbon per year from the generation of electricity power. Year 2010 the company revenue is $1,157 million and net profit is $196.5 million. The figure shows the company will significant loss in the following year. The question is does it be cost transferred to consumer.

On other side, GE Energy report said the main contributor of greenhouse gas emissions are associated gas flaring from oil and gas industry. What is associated gas flaring? In oil exploration and production, associated is hydrocarbon gas from the well. When extracting the crude oil from the well, this associated gas will flow together with oil. However some of the gas will utilized for power generation and heating. The rest of gas will be flared if there is no export gas or injection gas facilities available. The gas is burnt without generating any utilities power. Why the gas must be flared? It is due to safety issue. When unburnt hydrocarbon gas release to atmospheric will threaten the workers.

The company shall use most energy efficiency machine or technology to reduce the greenhouse gas emission. They should more environmental responsible.